TD Ameritrade FY 4Q14 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Fed funds movement has a much greater impact than a shift in yield curve

“It is important to note that a severe drop in the yield curve, like what happened in mid-October, would have a minimal impact to our overall results next year. Since the movement of the yield curve only impacts new extensions, only balance growth prior extensions rolling off the ladder and being re-extended would be impacted. Based on the timing of balances rolling off the ladder in the next 12 months, a 30 basis point drop in the yield curve would drive an approximate $0.01 downside impact to our earnings per share next year.

Remember though, fed funds changes would have a material immediate impact to the next 12 months. For fiscal 2015, we do expect balances to grow 5% to 10% with a potential to see a slight lift in yield. The overall result should be an increase of 5% to 15% in revenue. Finally, the overall extension strategy is unchanged.”

Looking to earn 1.45-1-70 in FY 15

“Our earnings per share range for fiscal 2015 is $1.45 to $1.70 with a pretax margin of 41% to 43%. The variability of results will primarily be driven by trading volumes, balanced growth and interest rates in that order.”

Not sure who came up with the term robo advisers, but it’s out there

“The robo-advisers has certainly got a lot of media coverage. There is no question about that. I am not sure who came up with the term robo-advisers, but anyways it is there.”

There is no way that the Fed pulls out and everything stays calm

“I have said before that basically when the fed starts to pull out, there is no way that they do that and everything is nice and calm.”

The wirehouses have gotten a little better at retaining their people, but there’s always someone who is unhappy

“I do think the wirehouse has gotten better at retaining their better brokers and producers and having said that, our experience is that there continues to be lots of opportunity. And there is always one player, whether it be one of the big wirehouses or one of the independent broker-dealers that is doing something, whether it’s on their payment grids or compliance or something else that causes some people to be dissatisfied and whenever they are dissatisfied they will consider that opportunity.”